According to Ken Wade, CEO of NeighborWorksAmerica, it's "a symptom of the complexity of the mortgage market today". How about just being blunt and honest - it's a symptom of the lack of due diligence on the part of the consumer.
It's quite simple folks - don't buy a house unless you understand what you're getting yourself into especially when it comes to financing.
If you are making what is probably the biggest purchase of your lifetime, don't you owe it to yourself and your family to know what you're getting yourself and them into? Wouldn't it be prudent to stop and ask questions if you are unsure as to what you are agreeing to before you say "yes" to the loan or even while you're at the settlement table prior to signing the loan documents?
A line from a post on The XBroker says it best:
"There's no other industry that makes you pay for what you don't know quite like the mortgage business."
This is why if you don't feel comfortable, stop and address your concerns. And if you don't know or understand something, find out or ask until you do.
There are countless resources, most of them free, available to consumers on-line as well as in print form from various credit counseling organziations, government agencies, financial institutions, etc. To help you on your way, here are a few links:
- Understanding Mortgages
- Google Search - "credit counseling"
- Google Search - "mortgage counseling"
- Housing Counseling Agencies (by state)
- HUD Approved Lenders
- Consumer Information from HUD
- Guide To Financial Literacy
- Mortgage Terms Glossary
- Glossary Of General Real Estate Terms
Give yourself as much time as you need to research and don't ever be afraid to stop, think and ask. If you don't, the only one you can later blame is yourself.
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